Hi friend!
Your crypto pal, Vanessa, from buidlbee here and I’m so excited to write to you! The crypto industry is buzzing with new positive energy and I’m sure you might have an idea why 😏
Here’s the gist:
Bitcoin hit a new high 📈
While some altcoins are hitting new lows 📉
But AVAX is going up too 🚀
Bitcoin passes $18K!!!
Tears of joy are literally in my eyes as I type because I’m so happy to announce that the Godfather of crypto, Bitcoin, passed $18,000 today for the first time since last summer! 🥳 On January 9 the coin was sitting at $17,000, and has shown consistent increase since, growing by 8%!
So what’s the reason behind this and are we expected to see more growth? Let’s talk about it…
Macroeconomics: Earlier this week, the U.S. government expressed a decline in dollar inflation. This announcement was followed by an official report today containing the Consumer Price Index (CPI) by the BLS Agency. The anticipation of this report caused the asset market [crypto, gold, stocks, e.t.c.] as a whole to rise. As expected, the CPI indicates a drop in inflation from 7.1% to 6.5% (lowest in over a year), this also means a drop in key rate [this determines the value of money, i.e. how expensive money is. The higher the key rate, the more expensive and the less money is in the market.] High key rates are a big part of the reason we’re in this current mess we call the Crypto Winter, so if all goes well, we won’t be here for too long 🤞
Liquidation: Traders expected BTC to fall which led to active shorting of the asset recently. However, it gave us all a good shock by growing quickly (5% in a few hours), leading to a forced closure of trading positions that went the opposite route, thereby liquidating their deposits. Total liquidations in the futures market were $245M and the higher that number, the more likely it is that there is a trend reversal happening in the market which is the case.
China is warming up: Recently the Chinese government has been making efforts to return to the crypto market, ever since its illegalization in September 2021. In the last month; the country’s first Bitcoin futures — ETF — opened and attracted $79M in initial trading; trading volumes on OKX are on the increase; and Hong Kong is also making efforts to adapt the industry by accepting crypto companies worldwide.
These three indicators are the factors most responsible for BTC’s recent surge and I don’t know about you, but I’m on team “Bitcoin to the moon!” 🚀
Can you just BULL already?
As we discussed, BTC is doing amazing, and as expected, so is ETH, trading at $18,000+ and $1,400 respectively 🔥
A rise in Bitcoin’s price often leads to a rise for the market as a whole, but three altcoins seem to be lagging far behind. Bitcoin SV (BSV) is down 7.9% in 24 hours, FLARE (FLR) is down 6.8%, and ApeCoin (APE) is down 4.6%. So let’s get to the bottom of this hall we?
BSV: Yesterday, Robinhood announced they will be delisting Bitcoin SV by January 26 for unknown reasons, meaning users will no longer be able to make transactions with the token. This made BSV holders sell off quickly, leading to a drop in price from $44 to $40 and still free-falling.
FLR: As with most institutions these days, FLR’s drop in price came after a bad review from a popular influencer. This coin is the native token of FLARE [a Layer-1 blockchain on Ethereum Virtual Machine (EVM)] and recently the long-awaited airdrop of FLR to Ripple (XRP) holders occurred. This involved a 15% FLARE distribution to wallets holding XRP on December 12 (0.1511 FLR for every 1,0000 XRP stored). Ripple’s CTO, David Schwartz, criticized FLARE for technically riding on the back of XRP, stating that the airdrop rules do not provide incentives for holding FLR so holders have nothing to lose by selling, and also adding that anyone who buys FLR gets an airdrop anyway so FLARE was only giving 15% of what they promised. The comment dropped the token from $0.05 to $0.04.
APE: Yesterday, news broke on a lawsuit filed against Yuga Labs [the company that owns ApeCoin] concerning investors who lost from the acquisition of Bored Ape Yacht Club (BAYC) NFT, ApeCoins, and virtual land in the Otherside Metaverse from April 23, 2021, to December 8, 2022, pegging it as a security fraud. The utility token of the APE ecosystem, ApeCoin is now down to $4 from $5.
Another BULLISH contender!
Yesterday, Avalanche signed a contract with Amazon Web Services (AWS) for a collaboration expected to help scale the implementation of blockchain for enterprises, institutions, and government organizations by allowing private parties to run and manage nodes on the blockchain.
This skyrocketed its native token, AVAX from $12.44 to $16.34 in 24 hours; a 21.76% day growth and 27.8% growth from the week before. AVAX has a market cap of $4.74B — the 17th largest — and reached its All-time-high (ATH) of $134.87 on November 23, 2013.
So do we expect the coin to keep going up?
We honestly can’t say because, on January 5, the company announced another collaboration with Shopify to launch Avalanche NFT, and instead of increasing in value AVAX dropped by 6% in 24 hours from $12.12 to $11.43. Therefore, we can never really tell with the crypto market. On the plus side, Changelly analysts expect the value of the coin to possibly rise to $21.24 in 2023, while the CEO of AltCryptoTalk gives some other altcoins worth us looking into.
There you have it, friend, the run down from the streets of crypto today! If you’re just excited as me for the news, make sure to like & share this and watch your email tomorrow for more tips from me to help you make it with crypto 🚀